Chapter - 1 Flashcards
An investment dealer operates as a/an ___ when it acts on behalf of a buyer or a seller of a security and does not itself own title to the securities at any time during the transactions
Agent
An investment dealer or a duly registered individual that is registered to trade in securities in the capacity of an agent or principal and is a member of a Self-Regulatory Organization
Broker
Financial markets where debt and equity securities trade. They include organized exchanges as well as private placement sources of debt and equity
Capital markets
___ provides customers with physical and electronic facilities to deposit and withdraw depository-eligible securities and manage their related ledger positions (securities accounts). It also provides electronic clearing services both domestically and internationally, allowing customers to report, confirm and settle securities trade transactions
CDS (Clearing and Depository Services Inc.)
The process of confirming and matching security trade details
Clearing
Shares in ___ investment companies are readily transferable in the open market and are bought and sold like other shares. Capitalization is fixed
Closed-end fund
___ makes direct cash loans to consumers, who usually are unable to secure a loan from a bank. They typically charge a higher interest rate than banks
Consumer finance company
Brokerage house that buys and sells securities for clients at a greater commission discount than full-service firms. Also known as ___
Discount broker, Self-directed brokers
An institution such as a bank, life insurance company, credit union or mutual fund which receives cash, which it invests, from suppliers of capital
Financial intermediary
___ companies that take advantage of computer technology to provide more efficient financial products and services
Fintech (Financial Technology)
Policies implemented to separate and isolate persons within a firm who make investment decisions from persons within a firm who are privy to undisclosed material information which may influence those decisions. For example, there should be separate fax machines for research departments and sales departments
Firewall
Investment dealer that serves institutional clients exclusively
Institutional firm
Investment dealer that offers products and services that cover all aspects of the industry, including full participation in both the institutional and the retail markets
Integrated firm
A person or company that engages in the business of trading in securities in the capacity of an agent or principal and is a member of IIROC
Investment dealer
A fund or company that sells units or shares and invests the proceeds in a portfolio of securities. There are two principal types: closed-end and open-end or mutual fund. Shares in closed-end investment companies are readily transferable in the open market and are bought and sold like other shares. Capitalization is fixed. Open-end funds sell their own new shares to investors, buy back their old shares, and are not listed. Open-end funds are so-called because their capitalization is not fixed; they normally issue more shares or units as people want them
Investment fund
A member-based professional association that represents the interests of market participants
Investment Industry Association of Canada (IIAC)
An investment fund operated by a company that uses the proceeds from shares and units sold to investors to invest in stocks, bonds, derivatives and other financial securities. They offer investors the advantages of diversification and professional management and are sold on a load or no-load basis. The shares/units are redeemable on demand at the fund’s current net asset value per share (NAVPS)
Mutual fund (Mutual funds are open end funds)
Mutual funds are ___. There is no limit to the number of shares that they can issue
Open-end funds
A ___ is a pool of assets managed with the goal of supplying its beneficiaries with income during their retirement years
Pension fund
The issuance of securities in the primary market is called ___
Primary market distribution
The person for whom a broker executes an order, or a dealer buying or selling for its own account. The term may also refer to a person’s capital or to the face amount of a bond
Principal
___ are investment dealers that serve only retail clients. They include full-service firms and discount brokers. Full-service firms offer a wide variety of products and services for the retail investor. Discount brokers execute trades for retail clients at a reduced rate, but do not provide investment advice
Retail firms
An online investment service that provides clients with automated investment advice
Robo-advisor
___ purchases, at a discount, instalment sales contracts from retailers and dealers when such items as new cars and appliances are bought on instalment plans
Sales finance company
A financial institution whose main role is to accept savings deposits and pay interest on those deposits. Usually set up by a government and is similar in function to a credit union
Savings bank
Canadian-owned banks. The largest 6 banks in Canada out-distance the asset size of other Canadian-owned banks. These banks are regulated by the Bank Act
Schedule I bank
Banks that are incorporated and operate in Canada as federally regulated foreign bank subsidiaries. These banks are regulated by the Bank Act
Schedule II bank
Banks that are federally regulated foreign bank branches of foreign institutions that have been authorized under the Bank Act to do banking business in Canada
Schedule III bank
___ offer discounted transaction costs and do not provide investment advice to investors. Also known as ___
Self-directed brokers, Discount brokers
The moment of irrevocable exchange of cash and securities
Settlement
